The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-22
Three of the Great Transcontinental Lines
Ask Suspension of the 1Iong-and Short
Haul Clause Of the New Railway Law.
Efforts of the Big Railway Companies
to Destroy the Shipping Interest.
Pennsylvania Raises the Boycott on Num-
Der of Western Lines and Enforces 1t on
Three Additional Boads-Local Notes.
BEFORE THE COMMISSION.
Arguments For and Against Suspension Of
the Long-and-S -Short-Haul Clause.


graphs the Interstate Commission, on behalf Of
the Board of Trade and merchants of Chicago.
announcing B wish to be heard upon the trans
continental question, and asking that the de-
cision of the commission be withheld until argu-
ments can be submitted 1--WE are" the rele-
gram says. .sin favor of conditional suspension
of the long-and short-haul clause Pacific
coast traffic, provided rates from the great lakes
and Mississippi valley be made proporiionally
less than from the Atlantic seaboard, as has
been the case in the past. We would also pray
that you exercise the power given you in Section
f. of prescribing the extent to which the carriers
may be relieved as to protect intermediate
territory now excluded from direct commercial
relations with the East, by ruling that the inter-
mediate rates shall in case be more than 50
per cent, higher than the through rate"
The following telegram, from San Francisco,
was received by the commission:
Defer action on Section until receipt of
memorials from Chamber os Commerce and
leading merchants aud manufacturers of this
city, mailed yon to-day. In them will be found
potent Arguments against suspension"
This is signed by w. T. Garrett, president of
the Manufacturers Association of California,
and seven firms forming q committee of the
merchants and manufacturers Of San Fran
cisco. Also the following:
'.At meeting of the Manufacturers Aasocia-
.ion of California, held to-cay, the following
was adopted:
Resolved, That the general good of the people Of
the Pacific coast particularly in their manufacturing
and industrial pursuits will be promoted by the inter
state-commerce act and especially by the enforce
rnent of the fourth section thereof its provisions
afford long needed relief from the exacrions and
inst dscrim;nations in transportation rates which
ed
injury upon manufacturing industries We
therefore earnestly oppose and respectfully protest
against the suspension OF the sad iourtn secnon OF
the act.'
W L. Merry, president OF the Chamber OF
Commerce of San Francisco, telegraphs series
of resolutions adopted by that body favoring
..the exception of such industries and special
cases = absolutely require rapid transit from
the operation of Section 4.
Ralph w. Thatcher,a miller, of Albany, N.
Y, said he had contract for certain favorable
terms of transportation nuder which he had
built an elevator, bu, the Delaware & Hudson
Canal Company refused to carry out the contract
since the interstate law went into effect and his
business was at a standstill. He wanted an or
der directing the company to fulfill its contract.
Charles Fl. Tweed. of New York. addressed
the commission in behalf of the prayer Of the
Southern Pacific railroad for a suspension of the
fourth section of the law in its behalf. He pre-
sented formal petition which sets forth that
the Southern Pacific is in competition for the
transportation of through passengers and freight
with the Canadian Pacific, the Pacific Mail
Steamship Company, clippers and tramp steam
ers, and that the business is done under So bstan
TALLY dissimilar conditions from those under
which local transportation is conducted. The
petitioner and other transcontinental companies
have caused to be prepared two tariffs for trans
continental business one based upon the
sumption that the fourth section of the inter-
state-commerce act does. and the other that it
Goes not. apply to cases in which competing
agencies enter, and which are not answerable to
the interstatecommerce law. In case the petit
toner adhered to the st-named schedule, the
result would be the loss OF the whole or the
| greater part of the through business. The effect
of putting this schedule in operation has been 10
reduce the through business by at least 80 per
cent, and the amount now being done lis very
inconsiderable Ga the other hand, IL the rates
for intermediate local traffic should be reduced
to rates not greater than those requisite to
able the petitioner to do any part OF
the throu gh business, the whole earnings of the
roads operated bv the petitioner would be wholly
inadequate 10 the paymentof their fixed charges.
While the petitioner verify believes that the Cir
| cumstances and conditions governing the
through business are substantially dIssimiiar
from those related TO the local traffic, still. the
penalties prescribed are SO stringent and severe
ont tbs assent of the commission, TO put In force
| such tariffs as are requisite to the retention of
any considerable portion OF the through traffic,
/ and it therefore invokes the action of the com
mission in that behalf and prays authority to
charge less for longer than for shorter distances
! for transportation Of passengers and property,
] and that it be relieved from the operation of the
/ fourth section. The petitioner further
conditions are applicable to trans
| portation between the Pacific coast
| and interior points in the Mississippi and Mis-
souri, valleys; between Australia New Zealand
| British India, Japan and the islands OF the Pa
cific and points in the United States and Can
| ada east of the ninety-seventh meridian. and
! between Europe and the Pacific coast. If fur
ther investigation is deemed necessary, the petit
TONER asks an order for the temporary suspen-
sion Of the operation Of the act IN respect to this
| traffic
| A. T. Britton. attorney of the Atchson, To-
j peka & Santa Fe railway read petition setting
| forth that the road and its connections were en-
| gagged in transcontinentai traffic. In honest
| endeavor to comply with the law it had put in
operation new schedules, which, while they in
| creased the through rates, largely reduced the
| rates to intermediate points. The average ra-
| ductions we're from 20 30 per cent, according
| to the class of freight carried While this had
not resulted in increasing the way traffic. 1t had
| entirely destroyed the through traffic. For two
weeks the road had not received any through
west bound freight, and only such east bound as
| irnperatlvely required immediate transit. To
! illustrate the company formerly hauled
| large quantities of oil; but now contracts
were being made for this traffic by sea- covering
the entire coming year. The prayer of the petit
sion was similar to that of the Southern Pacific.
Gen w. NJ. Belknap, representing the st.
Louis & San Francisco road. presented petit
tion setting forth the circumstances influencing
that company's through traffic. and asking
that the fourth section OF the act be suspended.
| James Goddard. assistant general manager
| of the Atchison, Topeka e. Santa Fe road, was
sworn and in reply to inquiries by counsel sub
stantated, under oath, the matters set fourth in
| the petition mentioned above He was INFORMED
that since the new rates went into effect ae
steamships had raised their rates materially.
keeping Just enough below those of the railroad
to take the traffic The company asked to be
placed in position where it could meet the
competition Of tho clippers without further ref
erence to the commission. The company did
not wish however. to do business at - loss. and
there were classes Of freight which the road did
not expect TO carry The present through rates
had been made by the roads in conference, and
they were greatly increased over the former rates
The basis OF rates between the East and way
points pear the Pacific coast has been tbs
through rates To San Francisco aud the loca
rates back added together, the sum total eeins
not unreasonable The Union Pacific had, hs
believed, practically Withdrawn from through
traffic during the recent rate war, and hHc